Page 17 - CIMA OCS Workbook February 2019 - Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

4 – Remuneration

Remuneration of directors should be adequate to recruit and retain individuals of the required
calibre, but without being excessive. Non-executive directors, (if appointed) could share some of
the responsibility for determining a transparent remuneration policy for board members, and to
evaluate their performance, particularly if part of the remuneration package is performance-
related.
5 – Relations with shareholders
The board has responsibility to ensure that there is an effective dialogue with shareholders. This
may become more important if the shareholder base is expanded at a future date in order to raise
additional finance.
Trigg Adventure should ensure that the annual reports and accounts provide information to
shareholders and other stakeholders that is relevant and reliable and which enables them to
assess their investment in the company.
Conclusion
It is acknowledged that some of the issues noted above will necessarily incur additional cost if
implemented by Trigg Adventure. However, the additional costs incurred may lead to
improvements in the way that the company operates and in the quality of decision-making. Any
changes introduced to improve corporate governance are likely to be viewed favourably by
decision-makers when submitting tenders for contracts with government bodies.

Other suggestions, such as the formalisation of holding regular board meetings and recording
decisions at those meetings could be implemented very easily with minimal cost. Similarly,
allocating responsibility to a director to maintain a risk register (along with information relating to
management of risks identified0 probably only formalises wheat currently happens on a day-to-
day basis.

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